Mehdiabad Complex Zinc Concentrate Production Capacity Rises to 800 Thousand Tons

Mehdiabad Lead and Zinc Zomplex Manager announced: as about half of the country's 400 thousand tons of zinc ingots capacity is left empty due to the shortage of feed while Angoran Mine deposit is going to run out soon, the complex has planned to reach production of 800 thousand tons of zinc concentrate within 4 to 5 years to supply the feed required by factories.

According to IMPASCO PR; regarding the latest status of investment in Mehdiabad Lead and Zinc Mine as well as construction of 100-thousand-ton zinc concentrate plant and construction of 100-thousand-ton zinc ingots plant,Amin Safari said: according to the provisions of the contract and the delay and the lack of progress of the project, the contract is terminated, and in this regard, according to the Minister of industry and President of IMIDRO, we are rapidly preparing the call documents and external consultant selection to hold an international tender, for which well-known international companies have expressed their desire.

On the history of this mine investment agreements, he said that based on the contract closed with the countries of Australia and Austria some years ago, it was agreed to the exploration of mines of this complex would be performed with the foreign side having 49% of the share and 51% for the Iranian side and mining operations would be continued for which a contract was made since 2012 between Mehdiabad Company and a consortium formed by Australian and Austrian companies as well as the private Iranian companies but due to the delay by this company, the mining operation and construction of relevant factories were stopped up to the beginning of the year 2014 but from the beginning of this year with the assistance of IMIDRO and IMPASCO in the investment field, the stripping operation began in the mine.

Safari added: Problems such as lack of capital, the differences between the partners and shareholders of the company the investor was up several sessions with the presence of the Minister of industry, the Vice Minister of mining, Department of IMIDRO and ceo of producing minerals in Iran. Given that the company is in the Department of construction of factory and had no infrastructure in terms of financing and in the mining sector is only 4 percent was achieved progress and substantial debts to contractors was also finally in August this year by the President of the Board of the IMIDRO agent warning that when financing the project was sent to the investor according to the result of the unavailability, finally closing October 17 this year in a contract the company is communicated .

Lead and zinc complex Manager Mehdi-Abad in describing the reasons for the cancellation of this agreement stated: the company over 3 years only 4 percent had done tailings before the operation, and the rate of progress of the construction of a plant for the production of bullion and concentrates on the provision of infrastructure, power and water pipeline transmission of zero percent. On the other hand the contractor the investor to advance tailings operations operation is being handled with the company during the preparation and production of minerals in Iran, compared to the non-receipt of demands of investor discontent, so it can be concluded that the investor virtually no action has not already done so. While that is according to the contract if the investor 6 months run out of time or 15 per cent of the fall back function, IMIDRO is obliged to cancel a contract that is in this thread enough time was given for compensate lag but unfortunately not achieved results.

Stating that a major activity of the year 93 this complex on the extraction and sale of barite has been added:

In this period we succeeded 750 thousand tons of barite-filled little Cutie, Cutie, and the factory production of that of course is not to be sold and the factory of barite for feed processing factory of barite powder Depot.

It is worth mentioning that in the past the officer does not have any retail complex and the middle of last year were concentrated in sales and products products of zinc oxide and calamine and eastern part on the variety of barite with different specific gravity through public auctions to sell alternate and continuous basis.

Safari with reference to that in the first six months of the year 94 for the first time this complex was able to reach profitability, added: in recent months to focus on increased marketing and sales departments fail to attract customers with high volume demand and we will soon consider a large tender which is 3 times the annual sales volume through the company producing the minerals we held.

He pointed out that in addition to selecting a new investor for lead and zinc, there is focus on marketing of barite: "given that the country’s need for barite is limited so we're trying to launch our export sector, especially to the Persian Gulf region so we would have a great share in the market of Persian Gulf oil field.

Also, regarding low carat of the soil in Mehdiabad Lead and Zinc Mine, Safari argued: first, extraction at low carat is considered normal and achievable on the world scale and then, in Mehdiabad Lead And Zinc Complex we are going to enrich carat of 6.5 to concentrate of 40%; of course now input feed available for Iran zinc ingots factories is 35%, which is meeting their expectations already.

At the end, he talked about finalization of comprehensive plan for extraction Mehdiabad Lead and Zinc Mines: the plan has been finalized and will soon be placed at the disposal of investors.